Total planted corn acres will come down “to a small degree” in USDA’s June acreage report, predicts Sue Martin, Ag & Investment Services. Yet keep in mind producers are “chomping at the bit” to plant a healthy volume of the crop.
“It’s that June acreage report that everybody’s going to anticipate,” Martin tells “AgDay” guest host Tyne Morgan on the Agribusiness Update segment for Monday, April 11, 2016. “I think a lot of traders are going to go into that thinking there’s been a big shift in acres. The question mark is if there’s a surprise. What if there hasn’t been [a reduction in corn acres]?”
Producers who intend to plant corn this year should keep in mind some forecasts suggesting abnormally dry conditions, she says.
“Once the weather window opens up, if you can get in to get your crops started for corn, you may want to do that,” Martin says. “Because if we’re looking at a hot, dry summer in July and August, I want to tell you the earlier you get your corn in, the better off you’re going to be.”
As planting kicks off, USDA will begin to publish planting progress reports starting with its first of the season on Monday, April 11. The market will not only watch U.S. plantings but also try to gauge global supplies, she says.
“Optimism on U.S. acres increasing for corn is there, but on the same token, we’re seeing acres ratchet back in other parts of the world,” Martin explains. “You look at wheat and you’ve got French wheat at 92% good to excellent. Right now, the market’s holding itself together because of U.S. uncertainty. But once we get toward May, I think then we’re going to have a little bit of a downward slip. Usually, soybeans even tend to gain on corn through the month of May.”
Click the play button below to watch the complete “AgDay” interview with Martin.